Nagasravan Tamma has Published 288 Answers

What are the difference between accounting and auditing?

Nagasravan Tamma

Nagasravan Tamma

Updated on 18-May-2022 13:35:22

Accounting is used to track the monetary transactions and also used as a tool for reporting business financial statements whereas Auditing is the verification activity. It verifies financial statements. It checks and confirms the authenticity of books prepared by accounting people. Validity and reliability of accounting information is also determined ... Read More

What is the difference between cash settlement and physical settlement?

Nagasravan Tamma

Nagasravan Tamma

Updated on 18-May-2022 13:32:55

Let us see first understand what cash settlement and physical settlement are −Cash settlementIn this net settlement is done with cash on settlement date, that means, it does not involve any physical delivery of assets or asset. In this, contractor pays the difference amount of spot price and future price. ... Read More

What are characteristics of forward contracts?

Nagasravan Tamma

Nagasravan Tamma

Updated on 18-May-2022 13:30:50

In forward contract both sellers and buyers involve in forward transactions and both are obligated to fulfill their obligations on or before maturity or expiry date. Obligations of forward contract are as followsBuy or sell underlying asset at forward price or specific priceBuy or sell underlying asset at expiry date ... Read More

What is corporate restructuring?

Nagasravan Tamma

Nagasravan Tamma

Updated on 18-May-2022 12:22:56

Corporate restructuring is a process, where the entity modifies its capital structure or operations. Corporate restructuring is preferred, if there are significant problems in the financials of the corporation and to enhance their performances. Change in ownership is also one of the causes for corporate restructuring. Financial and legal experts ... Read More

What is the forward contract?

Nagasravan Tamma

Nagasravan Tamma

Updated on 18-May-2022 10:26:43

A forward contract is an agreement between two parties where, one party agrees to buy second party asset on a particular future date at a fixed price. This is a type of derivative financial instrument. It has right and obligation to be executed.In this contract, a buyer is called LONG ... Read More

What are the terms consent, free consent, coercion, undue influence, fraud and misrepresentation?

Nagasravan Tamma

Nagasravan Tamma

Updated on 18-May-2022 10:23:24

ConsentWhen two or more persons agree upon same thing and in same sense, it is consent.If a contract to be valid the consent of parties should be genuine. Consensus-ad-idem principle followed by parties in contract. Parties should have same understanding on subject matter in contract. Mere consent is not enough, ... Read More

What is the difference between forward contract and futures contract?

Nagasravan Tamma

Nagasravan Tamma

Updated on 18-May-2022 10:21:00

In forward contract, terms are negotiated between parties. In this, parties trade underlying asset a certain or agreed price at particular future time. This contract differs from future contract (standardized form of forward contract) whereas in future contract parties buy or sell underlying financial asset at particular rate in future ... Read More

What are the advantages and disadvantages of job costing?

Nagasravan Tamma

Nagasravan Tamma

Updated on 18-May-2022 10:18:56

Job costing is a costing method which is executed the work according to specifications of the customer. This production process depends on orders received from customers. This cost is ascertained for each job separately and it vary from customer to customerObjectivesAscertain cost, profit & loss of each jobProfitable and non-profitable ... Read More

What is the difference between bid and offer?

Nagasravan Tamma

Nagasravan Tamma

Updated on 18-May-2022 10:17:27

Terms Bid and offer (offer also called as ASK) is a two-way price which indicates best price at which securities can be bought and sold at point of time. Bid price is the minimum price whereas offer price or Ask price is minimum price where securities can be bought and ... Read More

What is contract function and contract formation?

Nagasravan Tamma

Nagasravan Tamma

Updated on 18-May-2022 10:15:55

The main function of a contract is to record transactions between entities that exist between parties legally. Contracts can be as simple as handshake between people or as complex deal between companies (which takes months of negotiations and preparation of pages of legal terms with help of team of lawyers). ... Read More

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